(

)

Intangible Assets

The Company’s intangible assets consist of core deposit intangibles, goodwill, and mortgage servicing rights. A summary of mortgage servicing activity is as follows:

(Dollars in thousands)	Three Months ended March 31, 2020			Twelve Months ended December 31, 2019			Three Months ended March 31, 2019
Balance, beginning of period	$	2,172			1,855			1,855
Originations		262			1,097			116
Amortization		(228	)		(780	)		(140	)
Balance, end of period	$	2,206			2,172			1,831
Fair value of mortgage servicing rights	$	2,745			3,390			3,702

All of the loans sold where the Company continues to service the loans are serviced for FNMA under the individual loan sale program. The following is a summary of the risk characteristics of the loans being serviced for FNMA at

March 31, 2020:

			Weighted			Weighted
	Loan		Average			Average
	Principal		Interest			Remaining		Number
(Dollars in thousands)	Balance		Rate			Term (months)		of Loans
Original term 30 year fixed rate	$	335,718		4.06	%		308		2,457
Original term 15 year fixed rate		96,149		3.20			132		955
Adjustable rate		40		4.63			254		2

The gross carrying amount of intangible assets and the associated accumulated amortization at

March 31, 2020

and

December 31, 2019

is presented in the following table. Amortization expense for intangible assets was

$0.3

million and

$0.2

million for the

three

month periods ended

March 31, 2020

and

December 31, 2019,

respectively.

	March 31, 2020
	Gross					Unamortized
	Carrying		Accumulated			Intangible
(Dollars in thousands)	Amount		Amortization			Assets
Mortgage servicing rights	$	5,032		(2,826	)		2,206
Core deposit intangible		574		(443	)		131
Goodwill		802		0			802
Total	$	6,408		(3,269	)		3,139

	December 31, 2019
	Gross					Unamortized
	Carrying		Accumulated			Intangible
(Dollars in thousands)	Amount		Amortization			Assets
Mortgage servicing rights	$	4,968		(2,796	)		2,172
Core deposit intangible		574		(418	)		156
Goodwill		802		0			802
Total	$	6,344		(3,214	)		3,130

The following table indicates the estimated future amortization expense for intangible assets:

(Dollars in thousands)	Mortgage Servicing Rights		Core Deposit Intangible		Total Intangible Assets
Year ending December 31,
2020	$	390		74		464
2021		477		47		524
2022		424		10		434
2023		356		0		356
2024		278		0		278
Thereafter		281		0		281
Total	$	2,206		131		2,337

amortization expense relating to goodwill is recorded as GAAP does

not

allow goodwill to be amortized, but does require that goodwill be tested for impairment at least annually, or sooner, if there are indications that impairment

may

exist. The Company’s stock was trading at a price below its book value at

March 31, 2020

and therefore, goodwill was analyzed for impairment. Based on the analysis, it was determined that goodwill was

not

permanently impaired and

write down was required at

March 31, 2020.

Projections of amortization are based on existing asset balances and the existing interest rate environment as of

March 31, 2020.

The Company’s actual experience

may

be significantly different depending upon changes in mortgage interest rates and other market conditions.